Worst. Yep. Talking about the coronavirus. Which the needs now tells us cannot be contained. And thats really why the dow plunged another 879 points today. S p 3. 3 , and the nasdaq 2. 7 on top of yesterdays hideous losses the dow has now lost 1,911 points in a row. Thats a decline of 6. two days now, you dont need me to tell you that this is serious stuff, especially if the director of the National Center for immunization and respiratory diseases told us this afternoon to now expectist significant disruption in our lives. Instantly that became conventional wisdom, thats the reason we told off so hard of course it is more complicated than that, right the stock market is following the much larger fixed income market where buying yields are currently hitting record lows. All sorts of maturities. The ten year is at 135 . The stocks got crushed the market is screaming that this pandemic will cause dramatic decline in Economic Activity both here and around the world. When the bond market speaks, the stock market takes that word as gospel if you want to prepare for the virus goto the cd krrks website. I am not a doctor, i dont play one on tv but i can help you prepare your portfolio for the coronavirus induced disruption which is clearly occurring we fiend ourselves at a crossroads as Warren Buffett told becky quick it has always been a great time to buy american stocks. Sometimes when they are on sale it is a better time pull the trigger. Is this one of those moments let me tell you how i approach the situation. It is not cut and dried. As i have advised you for weeks now, i said i want you to have a ton of cash. How much is a ton . Depends on you for my trust, which you can following by joining bly club, 20 of our portfolio is now in cash abnormally high. We were still selling stock even this morning raising cash. I thought we would be down told. I spent all morning on twitter at 3 30 a. M. Whatever real money dot com, squawk on the street, even when the averages were looking up telling you no, no, no when the market rallied this morning, even as the buys were tumbling to record lows we used that strength to sell. You have to. This morning was a suckers rally. You knew that because the bond market, by having Interest Rates go lower told you it was a suckers rally yeah, the trust actually sold a stock i like thats what we are doing now, act at this vision and blizzard. Dont matter wanted to sell another favorite, home depot, i believe the pandemic will keep people from shopping that stoj which was up huge ended up giving up the gains should have unloaded it but i dont want to take too shortterm review. My restrictions wouldnt let me ring the register. Larry kudlow, what happens if he is correct when he tells us to be more optimistic and less hysterical i have known larry a long time he has been right a lot n. That case, you could do worse than owning a stock like home depot, we know they are doing right and thrive in a low Interest Rate environment. Although, this is how hard people have gotten, Toll Brothers the high end Home Building reported a disappointing Fourth Quarter this evening unfortunately we didnt see many buying opportunities today i tried. Was looking all day. Sell cvs, buy that one, that could be good, right but the stock fell hard thanks to the sudden ascent of Bernie Sanders, because krsk purchased a Health Insurance provider and bernie wants to make private insurance obsolete even if this coronavirus cause as recession, lets them win the white house this a landslide another theory is he wont have the votes in congress to pass a Single Payer Health care plan. Why not be more aggressive after this human deline . Isnt that what we are supposed to do, what buffett is telling us lets pars it a little. I dont think the virus is had the numbers. The flash points flashed red they are the important bellwether and they are getting annihilated. Trucking down year over year got to get a better read on the economically sensitive industry. Remember, it is not the disease itself thats causing the carnage. It is not even dont let people tell you it is the fear thats causing it. No, it is the fact that is causing it it is disrupting commerce, slamming the brakes on economy it is not that the only thing you have to fear is fear itself. Thats wrong fear the facts the fact arent good another example. Mastercard their stock has been a phenomenal long term winner one of the best in the entire market, one of the top, really, really, for the last ten years probably one of the best there is last night they cut its revenue forecast because of yes the coronavirus. I am confident a year from now we can look back and say this was a one off. But that didnt stop people from dutching the stock nobody says jeff to worry about the coronavirus. Thats not how it works. Mastercard is in the Global Economy. If it happened to mastercard it canhappen to anybody in travel and leisure and retail you dont shop much when you are under quarantine or worried you are going to catch a potentiallipotentiall lethal disease i think the slowdown still isnt in these stocks. Thats why i continue to recommend the heavy cash position a good example macys they reported a good quarter better than expected but it has to address the coronavirus. All she wrote. Stock reversed finished down 5. 5 i have been adamant that you should avoid the travel and leisure stocks i cant dump on the crews lines anymore. Thats in the never retail category restaurants and retailers, if we go into lockdown mode i dont need to scare with you that list again. Speculative stocks have had their day this the sun the air is coming out of those balloons get out of them. Oil and gas, sell. Environmental issues aside you dont want energy into a slowdown when oil breaks through 50, i think it will, i think it will dawn on people that it is not just verleal concerns that aret abouting people out of those stocks who doesnt miss the numbers in this, who can count them utilities, still upside. I like con ed, too cheap i cant emphasize gold i do it every night. It is probably boring the heck out of you do you want to be creative i think netflix is a big winner. Amazon, too, if i werent concerned that delivery could be a problem. I debate talking about disney, we have a new ceo coming in. Iger is going to be exec chairman through 2021. A new ceo. I was thinking disly plus, but theme parks. No, not for me alphabet and facebook they can go lower they have strong businesses, they are not in china. What is really doing well . You know, the trio, i think that zoom video, because you can be at your home, moderna, because they have the vaccine. And gilead because they have got the acute therapeutics which means they have antivirals. Those were my three musk tears, they are still buys. Although the first two need to calm a bit finally cash it is your pal, it is your king, as you roll through this moment, until the market at least becomes we were at minus 4, after this news, minus 5, 6, 7, 8, i would feel better when did industrial stocks get so low that they reflect the economys new found weakness that i will say buy . If it doesnt come here in large numbers, then the downside will be more limited. We will know more. Dont worry about it we will take our time. Now you have been prepared for the worst. I think hoping for the best is premature. Bottom line i want to be more aggressive, beav in a modernas vaccine works, that zoom is the way to work at home, then i will have more stocks to recommend as the market dose down right now i would feel more comfortable if there were more pain in the market to reflect the true ugliness of the situation. Not now. Not yet. Will, in hawaii. Will caller thanks for taking my call. Of course. Caller i want to diversify and get some health care the Health Care Insurance stocks like you United Health again have negative political pressures. For new money going in now do you feel rather a drug company like bristolmyers is better postured better here or does it have a higher it has a higher p e and lower eps than johnson johnson. I like bristolmyers. It has a 3 yield. Why is it going down Bernie Sanders people feel Bernie Sanders has put a target on the back of all the Drug Companies bristol mice goes to 58, 59, before my trust will say got to buy more jim in virginia jim . Caller pleasure to talk to you. Same. Caller i have listened to you for quite a while. I learned a lot, learned to keep money on the side. Yes caller it is easier saving money watching the margaret go down than when my money is in the market i am trying not to be a pig so much last week, nvidia, which was one of my stocks, it reached its all time high so i took a lot of money off the table. Yes caller i wouldnt have done that if you hadnt advised that in your books and on tv . Right. Caller by real question right now is i think i know the answer but i want to hear from you okay. Caller do you think we reached a bottom yet no, no. You made a great sale. Will its not press our sense. You have got horse sense we sold nvidia, we if the like idiots thats often the best kind of sale, the one that feels idiot and then it is real smart. Tomorrow and today were excruciating prepare for the worst. Get tough. On mad money, mastercardsagea banka is stepping down i am talking to the bankable leaders successor about what is next then i am talking about technicals telling you why they scare the heck out of me and sales force report after the close and announced a key flock is stepping down stay with cramer announcer dont miss a second of mad money. Follow jimcramer on twitter have a question . Tweet cramer, madtweets send jim an email to madmoney cnbc. Com or give us a call at 1800743cnbc miss something head to madmoney. Cnbc. Com. Announcer virus fears continue to drive the market selloff. How can investors protect themselves from the volatility what first trades will reveal. Squaet tomorrow 9 00 a. M. Eastern. Watch and listen live on the cnbc app dont just plan to retire. Plan to live. An annuity helps cover your essential monthly expenses, so youre free to live the life you want. Find out how an annuity can give you Lifetime Income at protectedincome. Org the most reliableou are, canxfinwireless network youe to connect you with those who matter most. Thats because its the network that gives you the best coverage and more flexible data that you can share, mix with unlimited and switch at any time. Youll save up to 400 a year on your wireless bill. Plus, get 300 off when you buy a new Samsung Galaxy s20 ultra. Xfinity mobile. Click, call or visit a store today. You might have missed it with the carnage today in the markets. The last couple days have been terrible but we have big news in the Financial Technology space the longtime mastercard ceoagea banka has announced a transition to the roll of executive chairman and he is going to be replaced by a man who is current three chief product officer. Mastercard is a major position for my trust 13 compound annual Revenue Growth rate. It is a gigantic business. The stock has given you1500 since he took over he is turning over the reins to a man who knows the Business Inside and out it didnt help that mastercard last night lowered guidance because of the coronavirus we have to get a line on that. Many other companies have to do thatt same lets check in withagea and to learn more about the leadership position and the future for the stock even with a Global Pandemic welcome. Thanks for having us. I didnt expect it. You ran the place for a long time and then without leaving you are helping out your successor. Why now. It has been ten years when i joined i told everybody i would bif go it a ten year crack. This is the 11th year. One thing a ceo does is build a good bench we have a good bench he is moving in, he has the knowledge of the payments industry, understands geographies and the culture we want to build and sustain. Knowing when to step aside is knowing when to drive. Thats one that we dont hear often. Mikele a, you have knowledge of the areas that people want the know knowledge of payment technologies, Digital Innovation is there still regulation a company i have always felt is ahead of everybody else in these areas. How much has been you and where can you take it . I think where we need to go, where we can take it, huge potential beyond what we have already done there is a lot to be done outside of car payments. We are hugely successful in card payments think about all other types of payments that are out there, from one bank account the another, push payments, mobile wallets, i think there is tremendous space out there, b to b mamts, business to Business Payments making those simpler, a massive opportunity for us further ahead, voice commerce. What did we think of the alexas of this world and so forth how do we remain prep in that space is more opportunity . I am pretty excited. Geographically we have been waiting for you to be able to move into china. I think china needs your help more than ever it would seem like a natural for to say we need what mastercard brings any hope we have just told our license application has been accepted. Getting transactions through our rails is pro probably a year and a half off we have a great partner that does the clearing and authorize and settlement of all the transactions we are going to be the majority holder with work with them locally underground. I am excited but it is a year and a half away. A lot of people want to jump the gun in terms of valuation. Michael one of things that people say to me is jim you love mastercard so much, but there are things like paypal that are d they are digital, you guys, you are plastic, why do you still like plastic that isnt the right way to look at mastercard is it . You are absolutely not. If we talk about our relationship with Companies Like paypal they are amongst our largest companies. It is a way for people way but it is our rails and our reach and our safety security. The combination of Business Models like those with ours is a great way to think about it. Apple, apple and us partnering together with Goldman Sachs on the apple card, another Digital Company in the end look at our Technology Like toe kenization and say thats a great opportunity to come together i believe there is a opportunity the partner. The goldman guys tell me look out, this thing is incredible. The apple guys are telling me it is amazing but it doesnt get talked about enough for either company particularly in than an environment now where everything is sale. This is going to be longer after the coronavirus is over. I am really not sure why it is not talked about enough i think it is fantastic. Have you ever applied yourself. I have. Ten seconds you get it right on your phone it is a fantastic User Experience the account looks fantastic. The other day i was in the shop, the shop assistant showed me the card with pride and said i have it that doesnt happen with every other card we are happy about this partnership. True Digital First card. People are even excited about the piece of plastic in their hand in this case, metal. Dq, decency quotient. This i think is your true legacy besides what you made for share holers dq. That started out when i tried to explain to employees the importance of leading with your heart and your mind. Both with your colleagues and peer group but also outside the community you live and work in i belief is that companies can do well and do good at the same time thats where the idea came from. Iqeq is things i grew up with, dq is decency quotient, bring it to work. Do you create a level playing felled and let the best person win . Are you fair as compared to just being nice i think all those things add up to dq. The work started with michael in south africa years ago we have gone after 100 million feels for the world food program. We Just Announced the Priceless Planet Coalition we are going to planned 100 Million Trees with our partner thats our idea. Dq outside the Company Inside the company if you contribute 6 to your 401k anywhere in the world in this company we will put in 10 the idea is that at 16 a month you can retire at the right age with something close to 75 of your last year salary. Those are examples. You once told me when my daughters were over, there is hope women are improving in the work place, you went to smith and got the best mathematicians that made me understand top guys were getting it. We were trying to hire female engineers in our downtown campus we sent them to columbia engineering. They came back with men. But you have gotting to to Smith College of yearing and he this came back with the most outstanding women engineers who are now the core of our work force. Thank you thatsagea banka, the current ceo of mastercard. And michael meback, the chief officer who is set to take over the ceo role in january. You get the kind of things that i asked you about when you make that much money for people but you are a decent good many thats probably the most important thing. Thank you, gentlemen stay with mad money. Do you have concerns about mild memory loss related to aging . Prevagen is the number one pharmacistrecommended memory support brand. You can find it in the vitamin aisle in stores everywhere. Prevagen. Healthier brain. Better life. Apps except work. Rywhere. Why is that . Is it because people love filling out forms . Maybe they like checking with their supervisor to see how much Vacation Time they have. Or sending corporate their expense reports. Ill let you in on a little secret. They dont. By empowering employees to manage their own tasks, paycom frees you to focus on the business of business. To learn more, visit paycom. Com hey, our workers c